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Jun15
United Airlines Cuts Ad Budget 80%
To keep our students engaged with contemporary topics, Marketing Blurb recently united_airlines.jpgasked our marketing class what steps United Airlines should take to build their brand after declaring bankruptcy. Students realized it would be necessary for the airline to improve service quality. To do so, students realized the airline would need to re-structure with fewer planes, fewer flights and destinations. None of the students proposed that UA cut their advertising budget by 80%! But according to what we read in Brandweek, the airline is reducing advertising and marketing expense by $ 60 million dollars, or 80% of 2005 spending. The goal is to establish niche services to reinvigorate the brand. United will spend their remaining advertising budget on new media rather than traditional media which may well improve their results.

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